RFID and Time Based Competition

People often cite the need for better handling of time. Time has become a hot commodity and something customers crave. In fact, people consider time a luxury and is an integral part of convenience. Businesses wish to capitalize on this with strategies that give a Time-Based Competitive Advantage. They do this through implementation of new technology. That new technology is RFID. RFID technology has been available for years. However, it is only in recent times that is has seen a heavier implementation in grocery stores.

Grocery retail chains like Tesco utilized RFID-based self-checkouts along with other chains like Costco to save the store and store employees time and allow customers to things on their time. This makes customers feel more satisfied and leave employees with more time to assist and maintain the stores. Although RDID has its setbacks, it still offers many advantages. This essay will talk about such advantages. RFID may contribute in a positive way in the grocery retail industry.

This is because it has potential to increase the assisted sales factor and inventory turnover, which has an associated effect on increased sales rate. In other words, it contributed the generation of a time-based competitive advantage. RFID makes for quicker inventory turnover, improving business efficiency. Since RFID allows for a decreased level of store inventory the business can achieve, it promotes higher rate processes that generate profit and create competitive advantage.

Current literature explores the various ways RFID and Time-Based Competition are create a synergistic and positive effect on the grocery retail industry. In a 2012 book discussing fashion supply chain management, the authors discuss results of RFID use on sales and inventory. The results were positive with RFID aiding in increasing assisted sales factor.

"These results are based on the assumption that the extra time made available by RFID technology is spent serving a greater number of consumers, who can be expected to visit the store when the economy is healthy" (Wong & Guo, 2014, p. 220). The chapter continues by adding the longer time employees have to assist customers can only be efficiently utilized when there is a strategy strongly founded on staff-assisted sales.

However, when low periods of sale and demand exist, like witnessed in America's economy in the last decade, time saving technology, as RFID seems to lead to cost savings through reducing need for store personnel through time saved within background operations. Grocery utilize RFID technology because they need their employees to deal with many other background processes, one of which is helping customers.

The idea of a self-scanner for example, enables customers to get a price check on items they need to buy without having to call for an employee to assist them. These automated processes decrease the need for employee action so employees can then perform other tasks like improve customer service, keep the stores clean and well stocked, and so forth. RFID or Radio Frequency Identification Devices has been at the forefront of technology implementation for years.

Although there has not been much in terms of transformation in the retail industry when it comes to implementation of new technologies, people regard RFID as another technology that can transform the industry and retail supply chain. However, some issues keep RFID from becoming so transformative. One of those issues is implementation. People within the retail industry, especially the grocery retail industry desire to implement more technology into grocery stores. This is seen through self-scanners and self-checkouts. The issue however, is the implementation of these methods on a day-to-day basis.

Often self-checkouts, which are frequently RFID-based self-checkout systems, have issues with its software and hardware. Customers may have trouble inputting a credit/debit card. The scale that some of these systems have often do not work and cannot weigh the groceries properly, the system could freeze. There are many things that could and do go wrong with self-checkout systems. When these errors occur, it takes time away from employees in an attempt to fix it.

In fact, some stores even have people in the center or near the self-checkouts in order to provide assistance. They are also there to thwart potential shoplifting often seen in self-checkouts. Still, problems like these do not stop grocery stores from installing these kinds of systems. "The Nestle Nespresso boutique in Munich, Germany, is testing an RFID-based self-checkout kiosk by French manufacturer IER. The Expedited Self Payment kiosk is being targeted at smaller specialty shops that offer high-value goods" (www.retailcustomerexperience.com, 2013).

Regardless of how many issues can and do occur, it does have a positive impact on sales and convenience for customers. This is especially the case with stores that rely on customer assistance to increase sales. Customer assistance plays a big part in grocery stores because they keep produce and other foods coming in and provide help to customers looking for items. RFID has a synergistic and positive relationship with time-based competitive advantage. As explained earlier with the use of RFID-based self-checkout systems, RFID offers ease and convenience.

People are not dependent on their own speed to check out their items and do not have to wait for someone else to do it for them. Simulations show that RFID implementations are profitable whenever they contribute to increase sales, especially when a fashion retailer is focused on clerk-assisted sales strategies.

Sales growth results from the dynamic and integrated impacts of RFID technology on better inventory control, faster inventory turnover, and longer time available for store personnel to assist consumers as an effect of more efficient backroom operations (De Marco, Cagliano, Nervo & Rafele, 2012, p. 333). Because of this, store employees can help in other ways to make the customer experience more enjoyable. They can offer to unpack their groceries or help them locate items. They can help with returns and so forth instead of focusing on price checks and checking out.

However, what is time-based competition? Time-based competition or a time-based competitive advantage is a concept that time becomes a valuable resource. Businesses that make better use of such a valuable resources as time may gain a competitive advantage. This of course involves adapting and responding to changing market situations as well as other environmental conditions. The U.S. consultant named George Stalk, Jr., from the Boson Consulting Group, invented the term. It was later popularized by his book, Competing Against Time.

When RFID technology provides stores with employees with more time to help customers and maintain the store, this affords an increased chance to make more profit. Looking at an actual grocery retail chain, Tesco's supply chain remains within a state of change and flux. With ever-fluctuating business demands, the network and the business must adapt in order to continue working effectively. Because of this, they have altered majorly their network of facilities.

They did this be implementing technological updates and changes to their systems as well as through an ongoing focus on aspects of lean and flow processes. "In the case of technology, trials with.